In a rollercoaster ride in the stock markets today, mid-cap and large-cap stocks took a substantial hit, leading to a widespread decline across all sectors. The Information Technology (IT) and Fast-Moving Consumer Goods (FMCG) sectors bore the brunt of the sell-off.
Stock Market Overview:
All sectors finished the trading day in the red, reflecting the overall bearish sentiment among investors. However, the most significant losses were witnessed in the IT and FMCG sectors, which faced sharp declines in their stock prices.
In the broader Asian market, except for China and Taiwan, all other major indices ended the day in negative territory, highlighting the global nature of the downturn.
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Market Volatility:
The India Volatility Index (VIX), a key indicator of market volatility, surged by 10.68% today, indicating a high level of uncertainty and turbulence in the financial markets.
Top Gainers:
Despite the overall market slump, some stocks managed to buck the trend and posted gains. The top gainers on the NIFTY 50 index today were:
L&T (Larsen & Toubro): Rs 3,010.00, up 1.52%
Power Grid: Rs 200.75, up 0.70%
Airtel: Rs 925.65, up 0.59%
Axis Bank: Rs 1,030.90, up 0.56%
ONGC (Oil and Natural Gas Corporation): Rs 187.45, up 0.11%
Top Losers:
Conversely, the day’s top losers in the NIFTY 50 index were:
Tech Mahindra: Rs 1,229.50, down 4.59%
Asian Paints: Rs 3,170.35, down 3.98%
LTIMindtree: Rs 5,264.90, down 3.16%
Divi’s Labs: Rs 3,665.00, down 2.73%
Wipro: Rs 405.35, down 2.48%
Economic Indicators:
In other economic news, India’s external debt increased by $4.7 billion in the last quarter, reaching $629.1 billion by the end of June 2023. Interestingly, the external debt to GDP ratio declined slightly to 18.6%, down from 18.8% in March 2023 and 19.4% in June 2022, reflecting positive economic trends.
Additionally, India’s power demand surged by 10-12% year-on-year in September, reaching a five-year high of 140-142 billion units, according to CRISIL.
On the innovation front, India retained its 40th position on the Global Innovation Index 2023, as per the World Intellectual Property Organization.
Regulatory News:
The Securities and Exchange Board of India (SEBI) renewed the licenses of NSE Clearing and Indian Clearing Corporation for three years, ensuring the continued smooth functioning of these crucial financial entities.
Stocks Market Stock in the Spotlight:
Several stocks made headlines in Stock Market today:
L&T Finance announced the sale of its distressed-asset loan book valued at Rs 4,762 crore to three asset reconstruction companies (ARCs).
CESC received board approval to issue 30,000 non-convertible debentures on a private placement basis to raise Rs 300 crore.
KP Energy commissioned a 10.5 MW wind power project in Gujarat’s Dwarka district, consisting of five wind turbine generators.
ONGC has entered into a partnership agreement with NGEL to jointly investigate the potential for developing renewable energy sources and offshore wind power projects
Sterling and Wilson unveiled plans to raise Rs 1,500 crore through debt or equity.
IPO News:
In the IPO corner, Valiant Labs IPO witnessed a subscription rate of 0.72 times, with retail investors subscribing 1.28 times. The subscription period remains open until October 3rd.
On the listing front, Yatra Online IPO made its debut at a discount of 10%.
Market Closings:
In the one-day change figures:- in Stock Market
Gold prices rose by 0.39% to reach ₹58,270.
Silver prices dipped by 0.44% to ₹70,862.
The USD-INR exchange rate decreased slightly to ₹83.16 per USD.
In the U.S. markets, the Dow Jones increased by 0.04% to close at 33,562.58, while the Nasdaq saw a minimal decline of 0.01%, closing at 13,088.74.
Long-Term Returns:
Looking at long-term returns over the past 20 years:
The Sensex in India has seen an impressive annual growth rate of 14.45%.
The Nifty has also performed well with an annual growth rate of 14.08%.
In the U.S., the Dow Jones has grown at a rate of 6.58% annually.
Meanwhile, the Nasdaq in the U.S. has posted an annual growth rate of 10.35%.
In conclusion, the stock market experienced a challenging day with mid-cap and large-cap stocks leading the decline. High volatility, global market trends, and economic indicators played a crucial role in shaping the day’s trading activity, leaving investors and analysts closely watching the market for further developments.